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LG Steps Up MAP Enforcement

While the manufacturer has long maintained limits on advertised
discounts of its products by retailers, it has increased its attention to MAP
over the past 12 to 18 months.

According to James
Fishler, LG's go-to-market operations senior VP, the company is reviewing its
policies on a regular basis, revises them as it sees fit, and is holding all retailers
accountable for violations.

"There's a renewed
interest in making sure [the policies] are right for the marketplace and
consumers," Fishler told TWICE. "Retailers appreciate that we're trying to help
them maintain profitability. They benefit by making more margin, and consumers
benefit when retailers re-invest in value-added services."

To support its enforcement efforts online, LG has replaced its
previous e-tail monitoring service with Channel IQ, a Chicago-based business
that scours the web 24/7 for pricing and promotions. The real-time information helps
clients including Crutchfield, Kodak, Panasonic, Sennheiser and Whirlpool develop
merchandising strategies, detect knock-offs and, for LG, enforce MAP policies.

Fishler described the
service as "consistent, accurate and almost instant" and as an important
enforcement tool as LG adds major appliances to its online channel sales,
beginning with floor care.

Online violations include posting an unsupported price, or
even the suggestion of one, outside the confines of a shopping cart or pop-up
box, while print infractions include picturing an LG electronics product in a
"famous maker" discount ad without an identifiable logo.

Fishler added that LG's MAP policy is relaxed during
sponsored national promotions surrounding holidays, Black Friday or other
special events.